Cheque
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Definition of Cheque
Cheque refers to a negotiable instrument used in financial transactions, serving as a written order from an account holder to their bank, directing the bank to pay a specified amount of money to a designated recipient or beneficiary.
Cheques are widely accepted for settling payments, transferring funds, and making purchases. They provide a secure and convenient alternative to carrying cash and enable individuals and businesses to make payments without physically exchanging currency.
What is Cheque?
A cheque is a written document that functions as a payment instrument, allowing individuals or entities to make payments or transfer funds from their bank accounts to others.
It typically includes the name of the account holder, the name of the payee or recipient, the date of issuance, the amount to be paid in both numerical and written formats, and the signature of the account holder.
Once the payee presents the cheque to their bank for processing, the bank debits the account holder's balance and transfers the specified amount to the payee's account.
